Is this at the bottom of your To-Do list?

Hands up if you’re guilty of kicking this can down the road. Success planning is crucial for ensuring business continuity, retaining organisational knowledge and mitigating talent shortages – and yet it often gets bumped down the To-Do list amid the daily triage. 

A 2021 survey by the Society for Human Resource Management found more than half (56%) of respondents had no succession plan in place. Only 21 percent said their organisation had a formal plan. The main reason given for not having one was a lack of time and resources.

This might make sense in the short term but it can prove costly in the long run.

Analysis published in the Harvard Business Review determined poor succession planning in C-suite roles costs S&P 1500 companies one trillion US dollars a year. Researchers behind that analysis say it also leads to “excessive turnover and significant value destruction for companies”. Eek.

Unsurprisingly, they recommend workplace leaders plan ahead so they don’t get caught unexpectedly short of talent, which can happen easily in the current workforce climate. (A recent Gallup survey found 42 percent of Australian workers are looking for a new job.) 

The researchers also recommend organisations “purposefully identify and develop [their] rising stars.” Not only does this cut recruitment and onboarding costs, promoting from within typically means the successor is already familiar with company culture and processes. With research indicating it can take up to 2 years for a new employee to be fully productive in their role, investing in internal talent can make a lot of sense.

But there’s an aspect of succession planning that’s often overlooked in data analysis – the opportunity to leave a legacy. 

We know women are less likely to be formally en route to the C-suite – 82 percent of pipeline roles are currently held by men – so succession plans offer a chance to shape the future. To consciously address the imbalance and close a whole bunch of gender gaps for the next generation.  

It’s not often we get the opportunity to proactively make history. This could be yours.